A bipartisan group of lawmakers wants to establish federal standards for the CBD market, which has been thriving in recent years.
US Representatives Kathleen Rice (D-NY), Morgan Griffith (R-VA), Angie Craig (D-MN) and Dan Crenshaw (R-TX) tabled a bill last week that they say will do so will help set standards for CBD. Food and beverage products “to protect consumers and ensure market stability for farmers, producers and retailers”.
The bill, dubbed the “CBD Product Safety and Standardization Act of 2021,” “will create the clear regulatory framework needed to keep business stable and ensure unsafe products stay off the shelves,” said Rice in a statement.
The law “would allow” [the Food and Drug Administration] Regulate CBD like any other food ingredient and subject these products to enforceable safeguards to ensure accountability, ”read a press release while simultaneously mandating the agency to“ set and determine CBD content limits and packaging and labeling requirements what categories of food “CBD is suitable for use.”
“This bill will help distinguish responsible actors from bad actors who ignore federal requirements for quality, manufacturing, labeling and claims, and it will bring security and clarity to the market,” the press release said.
The 2018 Farm Bill removed hemp and its derivatives from the list of federally controlled substances and paved the way for states to pass their own laws on cultivation. In April, with Idaho passing a separate measure, all 50 states had legalized industrial hemp. Research data released last week found that “Industrial hemp was $ 3.91 billion in 2020.”
Brandessence Market Research data found that the industry’s projections are “on track to grow at a promising 16.27 percent CAGR over the 2021-2027” period.
“The legalization of marijuana in 18 states in the United States has increased the promise of already robust growth in the hemp market. At its peak, industrial hemp hit $ 45 to $ 50 a pound in 2018, “Brandessence said in his report.
“The COVID-19 crisis has had a negative impact on industrial hemp with a slowdown in demand. The United States Department of Agriculture (USDA) estimates that farmers can produce up to two to 12 tons of dry logs per hectare. Similar estimates are projected in Europe, where farmers produce 3.6 to 8.7 tonnes per acre. The USDA also estimated that the variable, fixed, and operator costs are $ 286 per hectare for hemp fiber, $ 233 for certified seeds, and $ 196 for seeds. While these estimates are ancient, the promising new growth from legalizing marijuana in 18 states is a promising new growth engine for the industrial hemp market. “
But despite the growth of the industry and the ubiquity of CBD-based products, there remains “a lack of clear federal standards in the CBD industry.” [that] has puzzled businesses and put customers at risk, “Minnesota Democrat Craig said in a statement.
“It is clear that this growing industry needs regulatory clarity to continue to sell its products safely and effectively,” said Craig. “I am proud to work with my colleagues to introduce this bipartisan legislation to create enforceable guarantees and accountability in the industry.”
The press release from members of Congress said that “the discrepancy between the Controlled Substances Act and FDA law has created a regulatory gray area where CBD is widely used but unregulated by the FDA and considered illegal.”
Griffith, the Republican from Virginia, said that “the demand for CBD products has increased, but Food and Drug Administration regulations do not reflect this new reality.”
“As a result, adulterated or unsafe products are available that are harmful to consumer health, and companies lack clarity,” said Griffith. “The CBD Product Safety and Standardization Act would require the FDA to address the issue and ensure more safety in the CBD market. I am excited to join this bipartisan effort. “